Guidelines change for water catchment new homes

A central Victorian shire says it hopes State Government changes being announced today will again allow people to build new homes in water catchment areas.

A ruling by Victoria's planning umpire has limited the development of new houses on blocks that are smaller than 40 hectares in catchment areas.

However, Victoria's Water Minister, Peter Walsh, is unveiling new guidelines this morning.

Mount Alexander Shire Mayor Michael Redden says the problem has put the plans of many local residents in limbo.

"So I hope that the Minister's statement allows some leeway and allows us to be able to negotiate on behalf of some individuals where we can demonstrate that they can contain their sewage or black water on their properties," he said.